Defining the Final Check Process

Employee terminations occur for various reasons: some are initiated by the employee, others by the employer. When employment is terminated, regardless of the reason, the law requires employers to give employees their final wages. Some states require that the employee receives final wages before leaving the premises.

The Final Check process enables you to:

• Define a set of termination rules as a final check program that identifies the earnings, deductions, and leave plans to process when creating a final check.

• Automate the application of these rules to provide a clean, quick way of creating final checks.

• Create a final check for a terminated employee whether or not the termination has been processed through PeopleSoft HR.

  To process final checks for an employee whose termination has not been processed through PeopleSoft HR, enter the employee ID, termination date, and final check program ID on the Request Final Check page.

  Note: Because this process is workflow-enabled, the system automatically generates a worklist item to notify the personnel administrator that a final check request has been created for an employee who is not yet terminated on the Job page.

• Assign a final check program to each pay group using a final check program ID that you identify.

  The pay group's final check program becomes the default for final check requests of terminated employees in that pay group. However, you can override the default final check program for any employee on the Request Final Check page.

• Define a set of rules in each program for processing deductions or refunds on an employee's final check.

  For example, you might refund or override a general or benefit deduction on a final check.

  The system adds deductions and refunds to an employee's paysheet as one-time deductions. This enables a payroll administrator to further override any values on collections or refunds by deduction class, if there are any additional rules that are outside the scope of final checks.

  Note: Leave may be accrued each payroll by the hour, but the system does not prorate hour-to-hour leave accrual in the final check process. Even if you set up final check leave accrual to prorate leave on an hour-to-hour basis, the Final Check process does not calculate it.

Use the Final Check Action/Reason page (TERM_ACTN_RSN) to define the action and action reason code combinations that automatically trigger a final check request when an employee termination Job record enters the system.

Navigation:

Set Up HCM > Product Related > Payroll for North America > Payroll Processing Controls > Final Check Action/Reason > Final Check Action/Reason

This example illustrates the fields and controls on the Final Check Action/Reason page.

Use the Final Check Program Table - Program Definition page (TERM_PGM_TBL) to establish a final check program ID description.

Navigation:

• Set Up HCM > Product Related > Payroll for North America > Payroll Processing Controls > Final Check Program Table > Program Definition

• Set Up HCM > Product Related > Payroll for North America > Payroll Processing Controls > Final Check Program Table USF > Program Definition

This example illustrates the fields and controls on the Final Check Program Table - Program Definition page.

Use the Final Check Program Table - Earnings Definition page (TERM_PGM_DEFERN) to define earnings for the final check program.

Navigation:

• Set Up HCM > Product Related > Payroll for North America > Payroll Processing Controls > Final Check Program Table > Earnings Definition

• Set Up HCM > Product Related > Payroll for North America > Payroll Processing Controls > Final Check Program Table USF > Earnings Def

This example illustrates the fields and controls on the Final Check Program Table - Earnings Definition page.

Use the Final Check Program Table - Leave Accrual Definition page (TERM_PGM_DEFLVE) to define rules that apply to paying leave accruals to employees for whom you decide to pay earned or prorated accruals.

Navigation:

• Set Up HCM > Product Related > Payroll for North America > Payroll Processing Controls > Final Check Program Table > Leave Accrual Definition

• Set Up HCM > Product Related > Payroll for North America > Payroll Processing Controls > Final Check Program Table USF > Leave Accrual Def

This example illustrates the fields and controls on the Final Check Program Table - Leave Accrual Definition page.

Use the Final Check Program Table - Deduction Definition page (TERM_PGM_DEFDED) to define which deductions to include in a final check and which limits and special rules to use when calculating the deduction.

Navigation:

• Set Up HCM > Product Related > Payroll for North America > Payroll Processing Controls > Final Check Program Table > Deduction Definition

• Set Up HCM > Product Related > Payroll for North America > Payroll Processing Controls > Final Check Program Table USF > Deduction Def

This example illustrates the fields and controls on the Final Check Program Table - Deduction Definition page.

Use the Final Check Program Clone page (RUNCTL_FCXCLONE) to run the Final Check Pgm Clone Utility (final check program clone utility) SQR Report process (FCXCLONE).

Navigation:

Set Up HCM > Product Related > Payroll for North America > Payroll Processing Controls > Clone Final Check Program > Final Check Program Clone

This example illustrates the fields and controls on the Clone Final Check Program page.

Identify the final check program that you're cloning, specify a final check program ID and the effective date for the new program, and indicate which program elements to copy to the new final check program.